Insurance companies are for-profit organizations – i.e. they’re businesses.  The one basic hard and fast rule that universally applies is that in order to stay in business, the company has to acquire more revenue than they have to spend for operating expenses.  For this reason, the insurer has to be able to accurately determine the probability that the risk of providing coverage to a particular individual will not be an unprofitable transaction for the company.  In order to make this assessment, a variety of data is accumulated and analyzed and a formula is then created.  The formula is applied based on the data available and the premium is based on the likelihood that the insured will at some point incur a loss – i.e. file a claim.

The following is a breakdown of the most common factors used by insurers in order to best calculate risk.

Type of Motorcycle

Every type of bike has a different demographic in terms of its core rider.  Touring bikes typically are owned by older clientele, whereas sport bikes are usually ridden by younger generations.  The type of rider typifies a number of variables; experience of the operator, likelihood the bike will be properly maintained, probably the motorcycle will be abused, etc.  It doesn’t take anything more than basic common sense to realize that an 18 year old kid riding a 1000cc crotch rocket is exponentially more likely to lay his bike down at some point than a 50 year old man cruising around on a Harley Davidson or a Honda Goldwing.  These generalizations are often viewed as unfair, but statistical data doesn’t lie.  Furthermore, ask yourself when the last time you saw a guy on a Kawasaki Ninja with a ZZ Top beard straggling out the bottom of his helmet?

Credit Score

Another factor in determining the premium of the insured is his/her credit rating.  It may again seem unfair that people with poorer credit ratings have to pay more, but again – the basis for this is in the data.  Statistically speaking, the lower the credit score of the driver, the more likely he/she is to be involved in an accident that results in a claim or a loss.  Therefore, those with lower credit scores are forced to pay higher premiums.

The Deductible

The higher the deductible the insured is willing to incur, the lower the premium will be.

Driver History

A highway accident that involved a motorcycle is much more likely to result in a total loss.  Combine that with the fact that a driver with prior moving violations is of an increased likelihood of an accident, and the premiums are going to be lower for a rider whose driving record is clean.

About the Author:

Jim Buchanan is a writer for Powers Honda. For more information about Honda parts please visit http://www.powershondaparts.com

Article Source: ArticlesBase.com – Motorcycle Insurance Factors

Auto insurance brokers are better than getting quotes from just one “big name company.†Why? Because many – if not most – auto insurance companies use your credit history when factoring how much they charge you.

Their reasoning is that there is a connection between your credit behavior and the amount of claims you are likely to file. Though you may disagree, they believe that people with a better credit history will, in all probability, have fewer insurance losses.

Many companies still use the old tried and true method of age, type of car you drive, number of tickets you have received and where you live to gauge their rate. And again, auto insurance brokers take this into account when putting in your information and shopping for the best rates for you, thus saving you a lot of calling around.

When my wife and I moved from Southern California (where traffic is terrible and there was an accident on almost every major freeway every single day) to Sun City West, Arizona I expected to pay a lot less for car insurance (since it is a retirement community). I got the surprise of my life when my rate went up $250 per year. I was told this was because there were too many elderly people driving here who shouldn’t be driving. I didn’t like being called elderly at all. I was only 65. But since living here for a while I can see their point. Many of the people over 70 drive too slow and their reactions are much slower, thus causing a lot of the accidents on the streets here.

You may think it is not fair for your auto insurance company to be able to look at your credit report but the government says they can do just that. The Federal Fair Credit Reporting Act allows them to do it. It says they may use “Reasonable procedures†and credit history has been ruled as one of them – this also covers consumer credit, insurance, and employment as long as it is fair and equitable.

If you have bad credit then applying for an online quote from one of the big insurance companies won’t be accurate. My daughter used to sell cars and many of her customers with bad credit were quoted one rate online and another when they actually went to establish the insurance, because that’s when the credit got pulled and everything was adjusted. If you look at their sites you will see a disclaimer telling you that this is just a “quote†and that other factors may cause the rate to increase. This is why using an auto insurance broker is better. They will put all the information into the system “up front†and the quotes you get from them won’t change.

Another thing insurance companies look at is your insurance credit score – never heard of it? Well it’s there. The insurance credit score was developed by the insurance companies by using the same methods as the credit bureaus to predict your risk factors.

· Foreclosures, liens, collections etc.

· Your late payment history

· How long your credit history is

This isn’t all but enough highlights to give you the picture. Each insurance company uses different techniques. Because of this it is difficult to know what a good credit score is.

Auto insurance brokers aren’t legally obligated to tell you your insurance credit score. If you haven’t checked your credit report in awhile we suggest you order a copy today and know what’s on it before you start insurance shopping.

You can legally challenge any old, outdated, or incorrect information. This can be a daunting task and takes time, persistence and the tenacity of a bulldog. We suggest you contact Lexington Law. They specialize in credit repair. You pay monthly, so once they’ve done everything you need them to you can cancel their services. They even give you a money back guarantee if you aren’t satisfied.

It’s a good idea to shop for insurance with auto insurance brokers who represent many companies rather than just one big one. Auto insurance brokers will look at your needs and match you with the lowest rates possible. If you just call any large company you very likely won’t get the very best rate possible. Insurance, like any other commodity, is subject to competition. All are licensed so you won’t get ripped off.

If you have bad credit it’s better to use a smaller, lesser known insurance company, as they will typically give you the best rates. Most of these companies work only through auto insurance brokers, and don’t advertise on TV and the web. Which is why they can offer you lower rates than the big companies. Give one of our auto insurance brokers a call today and let them compete for your business!

Reference :
http://www.ftc.gov/os/statutes/fcra.htm

About the Author:

http://www.1-800BadCredit.com provides up-to-date information for people
with bad credit. Providing auto loans, mortgages and refinance options,
credit cards, credit counseling, personal loans, identity theft
protection and advice & tips on saving, budgeting and getting out of
debt. Founded by Dewey & Leslie Kearney who understand bad credit
because they’ve been there too! For our insurance brokers page go here:
http://www.1-800badcredit.com/auto-insurance-brokers.html
http://www.1-800badcredit.com/bad-credit-repair.html
Site dedicated to helping you find credit solutions

Article Source: ArticlesBase.com – Auto Insurance Brokers – Did you Know your Credit History Can Affect your Premium?

If my license is suspended in PA, will I be able to get one in NC now that I live here?

I paid all the fines off, but it’s suspended by PA for 3 months for not having insurance on a crap ass motorcycle.

No, when you apply for a license in any US state, they cross-check the other states to make sure you don’t hold a license anywhere else. It will come up automatically that your license is suspended. Trust me, I know because I tried it myself.

There are numerous things you need to look for when you are looking for Albuquerque Car Insurance. A few of these things will matter more to you than others, but all are important when the time comes.

Here are a few items that you’ll need to compare when you get ready to buy Albuquerque Car Insurance:

Price

In these discouraging industrial times, and for many years to come, price is going to be a prime consideration in any significant purchase. Car insurance, no matter where you are in the country, is a heavy investment and you need to be assured that you are getting the best bang for your buck.

Coverage

Not all auto insurance policies are born equal. You must know exactly what you are getting for your money and the way in which that compares to similar quotes from competing firms.

Service

Service after the sale is one of the things that is missing in so many insurance companies. You would like to find a company and an agent which will truly be there when the time comes. Nobody buys insurance looking to use it, but you need to know you’re going to be looked after if ever you do.

Reputation

for some time there, we had forgotten the importance of reputation when it comes to business. I believe we are recalling why it had been so significant in the 1st place. There’s a growing trend to pay a touch more in order to do business with companies that have reputations for excellence. See what folks are saying about your agent and the company you are considering.

Paying careful attention to these four things won’t guarantee the best price or a seamless transition but they will put you in a good position to get the best worth for your car insurance investment.

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About the Author:

Luke Chaney is an Insurance Professional with 25 years of experience. Luke has been an insurance provider in all 50 states and has won regional acclaim for his effective approach as an insurance provider.

If you found the information in this article helpful or interesting, read some of Luke’s other articles at: http://www.thekelleragency.com

Article Source: ArticlesBase.com – Albuquerque Car Insurance

Auto Insurance Terms – Help Me Understand?

Can you explain these terms?

Comprehensive- pays for physical damage to your vehicle which is caused by losses not covered under Collision coverage. Frequently referred to as “Other Than Collision”. Examples: glass breakage, deer collision, theft, vandalism

Collision – pays for damage to your vehicle when it collides with another object.

Property Damage Liability- pays for property damage that other people incur due to your negligence. This coverage does not pay for your car. You can not be liable to yourself.

Bodily Injury Liability – pays for bodily injury/death that other people suffer due to your negligence. You (as the driver of your vehicle) can not recover from this coverage. Again, you can’t be liable to yourself.

Liability coverage is referred to in a fraction. Although the numbers may be different – their place in the fraction means the same thing. Using the fraction 50/100/25 as an example:

The first number (50,000) is the most that can be paid to any one person as a result of bodily injury. So if you die – the most you can be paid is 50,000.

The second number (100,000) is the most that can be paid to all parties involved in an accident for bodily injury. So if you cause an accident with a bus and every person on that bus is killed, your policy will pay no more than 100,000 for the total off all their claims (and no more than 50,000 to any one of them).

The last number is property damage liability. This does not have a per person limit. This limit (25,000) is the most that can be paid for all property damage liabilty claims in any 1 loss.

Medical Payments – pays for medical bills only for passengers in your vehicle. Will also pay if you are a pedestrian that is struck by another car. This coverage pays regardless of fault. This coverage does not pay for pain and suffering, lost wages. Usually sold with a limit of 1000 or 5000.

Uninsured Motorist – bodily injury and property damage available. This coverage pays when you sustain bodily injury and/or property damage caused by another motorist. However that motorist does not have a valid insurance policy. This coverage steps in to pay what the other persons policy should have paid (had he had insurance).

Under-Insured Motorist coverage – sometimes is a separate coverage from insured motorist. In some states, it is a part of uninsured motorist. This pays if you sustain bodily injury/property damage caused by another motorist who has a valid insurance policy, however, the limits of his coverage are not sufficient to cover the damages in the loss. This coverage will pick up where the other guys policy ran out.

For more information, ask your insurance agent to give you a copy of your auto policy. The words are defined in there in more detail.